- AUD/USD is consolidating break below 200-DMA, is trading in a narrow range on the day.
- The greenback may remain under pressure on rising speculation on the appointment of less hawkish Fed Gov Jerome Powell.
- AUD/USD struggles to extend below 50% Fib retrace of 0.7160 to 0.8125 rally at 0.7642.
- The pair is extending upside for 2nd consecutive session, is up 0.06% on the day.
- Technical studies still bearish, but retrace above 200-DMA could invalidate our bearish call.
- Focus on China PMI this week, where China's official October manufacturing PMI is expected at 52.1 vs. 52.4 in September.
- China Caixin manufacturing PMI is expected to remain steady at 51.0.
- Markets also look ahead to the November FOMC meeting on Wednesday, in which it is widely expected to deliver no change in the overnight rate.
Support levels - 0.7642 (50% Fib retrace of 0.7160 to 0.8125 rally), 0.7625 (Oct 27 low), 0.76, 0.7571 (July 5 low)
Resistance levels - 0.7693 (200-DMA), 0.7696 (5-DMA), 0.7756 (38.2% Fib)
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -18.5311 (Neutral), while Hourly USD Spot Index was at 55.6792 (Neutral) at 0530 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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